☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-39326 OPEN LENDING CORPORATION UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) (Exact Name of Registrant as Specified in its Charter) Delaware 84-5 ...

Open Lending (LPRO) reported $30.75 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 19.9%. EPS of $0.04 for the same period compares to $0.10 a year ago.The reported revenue represents a surprise of +7.68% over the Zacks Consensus Estimate of $28.55 million. With the consensus EPS estimate being $0.05, the EPS surprise was -20.00%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stre ...

Open Lending (LPRO) came out with quarterly earnings of $0.04 per share, missing the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.10 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -20%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced a loss of $0.04, delivering a surprise of -180%.Over the last four quarters, the company has not ...

Exhibit 99.1 Open Lending Reports First Quarter 2024 Financial Results AUSTIN, Texas, May 7, 2024 – Open Lending Corporation (Nasdaq: LPRO) (the "Company" or "Open Lending"), an industry trailblazer in lending enablement and risk analytics solutions for financial institutions, today reported financial results for its first quarter of 2024. "I am pleased to report that in the first quarter of 2024, we exceeded the high end of our guidance for both certified loans and revenue and exceeded the mid-point for Ad ...

AUSTIN, Texas, April 16, 2024 (GLOBE NEWSWIRE) -- Open Lending Corporation (NASDAQ:LPRO) ("Open Lending" or "the Company"), an industry trailblazer in automotive lending enablement and risk analytics solutions for financial institutions, today announced that the Company will host a conference call to discuss first quarter 2024 financial results on Tuesday, May 7, 2024 at 5:00pm ET. A press release with first quarter 2024 financial results will be issued after the market closes that same day. The conference ...

Part I [Business](index=6&type=section&id=Item%201.%20Business) Open Lending provides a lending enablement and risk analytics platform (LPP) to automotive lenders, facilitating near-prime and non-prime loans with risk-based pricing and default insurance - The company's core product, the Lenders Protection Platform (LPP), enables automotive lenders to serve near-prime and non-prime borrowers through risk-based pricing and default insurance underwriting[18](index=18&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk) - Revenue is derived from program fees (averaging **$527 per loan** in 2023), claims administration fees (3% of earned premium), and a **72% share** of insurance underwriting profit from carrier partners[25](index=25&type=chunk)[26](index=26&type=chunk) - The company partners with insurance carriers for auto loan default insurance, with a new agreement signed with Core Specialty on February 15, 2024, following the expiration of the CNA agreement[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - The company operates in a heavily regulated industry, subject to numerous federal and state consumer protection laws including the Truth-in-Lending Act, FCRA, GLBA, and the Dodd-Frank Act[54](index=54&type=chunk)[55](index=55&type=chunk)[56](index=56&type=chunk) - As of December 31, 2023, the company had **210 employees**, primarily located in Austin, Texas[61](index=61&type=chunk) [Risk Factors](index=12&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks across business operations, regulatory compliance, and stock ownership, including lender dependence, revenue concentration, economic sensitivity, and regulatory complexities [Risks Related to Our Business](index=12&type=section&id=Risks%20Related%20to%20Our%20Business) Key business risks include revenue concentration with top lenders and insurance carriers, sensitivity to macroeconomic conditions, and operational vulnerabilities like security breaches and model errors - A significant percentage of program fee revenue is concentrated with the **top ten automotive lenders**, posing a risk if one or more are lost[81](index=81&type=chunk) - The company relies on a small number of insurance carriers, and the loss of key partners without replacement could materially harm the business, as seen with the CNA agreement expiration[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk) - Rising market interest rates have adversely impacted consumer borrowing, potentially leading to lower loan volume and higher delinquencies and defaults[87](index=87&type=chunk)[88](index=88&type=chunk) - The business is heavily concentrated in the U.S. automobile consumer lending industry, making it susceptible to market fluctuations[118](index=118&type=chunk) [Risks Related to Our Regulatory Environment](index=24&type=section&id=Risks%20Related%20to%20Our%20Regulatory%20Environment) Operating in a highly regulated industry, the company faces risks from complex and evolving federal and state consumer protection, lending, and insurance laws, including potential licensing violations and UDAAP enforcement - The business is subject to extensive and changing federal, state, and local laws, with non-compliance potentially leading to lawsuits, governmental actions, and reputational damage[139](index=139&type=chunk) - Operating without necessary state or local licenses for consumer finance or insurance activities could result in fines, penalties, and unenforceability of facilitated loans[150](index=150&type=chunk) - The Dodd-Frank Act's UDAAP prohibition poses a risk, as the CFPB could deem certain loan features facilitated by the company as unfair, deceptive, or abusive[153](index=153&type=chunk) [Risks Related to Ownership of Our Common Stock](index=28&type=section&id=Risks%20Related%20to%20Ownership%20of%20Our%20Common%20Stock) Stockholders face risks including stock price volatility, lack of dividends, concentrated ownership by insiders, and anti-takeover provisions that could deter a change in control - The market price of the company's common stock has been and may continue to be volatile[160](index=160&type=chunk) - The company has no current plans to pay cash dividends, limited by covenants in existing debt agreements[168](index=168&type=chunk) - Executive officers, directors, and principal stockholders control a significant portion of voting stock, enabling material influence over corporate and management policies[167](index=167&type=chunk) - Certain provisions in the certificate of incorporation and bylaws, including a classified board, could hinder or prevent a change in control[171](index=171&type=chunk) [Unresolved Staff Comments](index=31&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - No unresolved staff comments exist[175](index=175&type=chunk) [Cybersecurity](index=31&type=section&id=Item%201C.%20Cybersecurity) Cybersecurity risk is managed through an ERM process, including automated testing and NIST alignment, with oversight from the Audit Committee, and no material threats identified to date - Cybersecurity risk is managed via an enterprise risk management (ERM) process, utilizing automated scanning, annual NIST evaluations, and bi-annual third-party penetration testing for SOC II compliance[176](index=176&type=chunk)[177](index=177&type=chunk) - The Audit Committee of the Board of Directors provides oversight for cybersecurity risks, receiving regular reports from the CIO and CTO[183](index=183&type=chunk)[184](index=184&type=chunk) - To date, the company is unaware of any cybersecurity threats that have materially affected its business, strategy, or financial condition[182](index=182&type=chunk) [Properties](index=33&type=section&id=Item%202.%20Properties) The company leases its corporate headquarters located in Austin, Texas - The company leases its office space at 1501 South MoPac Expressway, Suite 450, Austin, TX 78746[185](index=185&type=chunk) [Legal Proceedings](index=33&type=section&id=Item%203.%20Legal%20Proceedings) As of the filing date, the company is not a party to any material legal proceedings - The company is not currently a party to any material legal proceedings[186](index=186&type=chunk) [Mine Safety Disclosures](index=33&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - This disclosure item is not applicable[187](index=187&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=34&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Open Lending's common stock trades on Nasdaq (LPRO), with no current dividend plans, and a **$75.0 million** share repurchase program with **$19.6 million** remaining - The company's common stock is traded on the Nasdaq under the symbol **LPRO**[189](index=189&type=chunk) - There are no current plans to pay cash dividends, limited by covenants in existing debt agreements[190](index=190&type=chunk) - A share repurchase program for up to **$75.0 million** is authorized through March 31, 2024, with **$19.6 million** available as of December 31, 2023[193](index=193&type=chunk)[194](index=194&type=chunk) Issuer Purchases of Equity Securities | Period | Total number of shares purchased | Average price paid per share (USD) | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs (in millions USD) | | :--- | :--- | :--- | :--- | :--- | | 10/1/2023-10/31/2023 | 127,347 | $6.84 | — | $25.6 | | 11/1/2023-11/30/2023 | 527,787 | $6.08 | 519,663 | $22.5 | | 12/1/2023-12/31/2023 | 423,238 | $6.83 | 416,475 | $19.6 | | **Total** | **1,078,372** | | **936,138** | | [Reserved](index=36&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved and contains no information [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2023, financial performance declined significantly with **35%** lower revenue and **70%** lower operating income, driven by reduced loan volume and profit share adjustments, while liquidity remained solid with cash from operations of **$82.7 million** [Executive Overview](index=38&type=section&id=Executive%20Overview) The company's financial performance declined in 2023, with certified loans, total revenue, net income, and Adjusted EBITDA all significantly decreasing compared to 2022 Key Financial and Operational Metrics | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Certified Loans | 122,984 | 165,211 | | Value of Insured Loans ($B) | $3.61 | $4.76 | | Total Revenue ($M) | $117.5 | $179.6 | | Operating Income ($M) | $29.1 | $97.6 | | Net Income ($M) | $22.1 | $66.6 | | Adjusted EBITDA ($M) | $50.2 | $105.7 | - The number of active lenders certifying loans increased slightly from **438** at year-end 2022 to **454** at year-end 2023[208](index=208&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Total revenue decreased **35%** to **$117.5 million** in 2023, driven by lower program fees and a **52%** decline in profit share revenue, leading to a **70%** drop in operating income Consolidated Statements of Operations Highlights | Line Item | 2023 (in thousands USD) | 2022 (in thousands USD) | % Change | | :--- | :--- | :--- | :--- | | Total Revenue | $117,460 | $179,594 | (35)% | | Gross Profit | $95,178 | $159,626 | (40)% | | Total Operating Expenses | $66,103 | $62,011 | 7% | | Operating Income | $29,075 | $97,615 | (70)% | | Net Income | $22,070 | $66,620 | (67)% | - The **52%** decrease in profit share revenue resulted from lower new loan originations and a **$22.8 million** negative adjustment for historic vintages due to higher loan default and prepayment rates[238](index=238&type=chunk)[239](index=239&type=chunk) - General and administrative expenses increased by **20%** (**$7.1 million**), primarily due to higher corporate employee compensation and benefit costs[244](index=244&type=chunk) [Liquidity and Capital Resources](index=45&type=section&id=Liquidity%20and%20Capital%20Resources) Principal liquidity sources are cash from operations and a revolving credit facility; 2023 saw **$82.7 million** in operating cash flow and **$42.3 million** used in financing, primarily for share repurchases Cash Flow Summary | Cash Flow Activity (Year Ended Dec 31) | 2023 (in thousands USD) | 2022 (in thousands USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | $82,658 | $107,431 | | Net cash used in investing activities | $(2,178) | $(624) | | Net cash used in financing activities | $(42,330) | $(17,797) | - Net cash used in financing activities totaled **$42.3 million** in 2023, primarily for the repurchase of **5,233,065 shares** of common stock for **$37.3 million**[257](index=257&type=chunk) - As of December 31, 2023, **$145.3 million** was outstanding under the Term Loan due 2027, with no borrowings on the Revolving Credit Facility[259](index=259&type=chunk) [Non-GAAP Financial Measures](index=46&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA, a non-GAAP measure, decreased **53%** to **$50.2 million** in 2023, with the margin declining from **59%** to **43%**, reflecting lower operating income Reconciliation of Net Income to Adjusted EBITDA | Reconciliation to Adjusted EBITDA (Year Ended Dec 31) | 2023 (in thousands USD) | 2022 (in thousands USD) | | :--- | :--- | :--- | | **Net income** | **$22,070** | **$66,620** | | Interest expense | 10,661 | 5,832 | | Income tax expense | 6,788 | 26,920 | | Depreciation and amortization | 1,159 | 915 | | Share-based compensation | 9,492 | 5,449 | | **Adjusted EBITDA** | **$50,170** | **$105,736** | | **Adjusted EBITDA margin** | **43%** | **59%** | [Critical Accounting Policies and Estimates](index=47&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Profit share revenue recognition is a critical accounting estimate, relying on a forecast model to project loan performance based on prepayment, default, and loss severity assumptions, which can materially impact reported revenue - Profit share revenue recognition is a primary critical accounting estimate, relying on a forecast model to project loan-level earned premiums and claim payments based on assumptions for prepayment, default, and loss severity[267](index=267&type=chunk) Sensitivity Analysis on Profit Share Revenue (as of December 31, 2023) | Assumption | 10% Increase Impact | (10)% Decrease Impact | | :--- | :--- | :--- | | Prepayment rate | (3)% | 3% | | Loan default rate | (7)% | 8% | | Default severity of loss | (7)% | 7% | [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is exposed to market risks including general economic conditions, concentration risk with its largest insurance partner, and interest rate risk from its variable-rate term loan and investments - The company faces concentration risk, relying on its largest insurance partner for a significant portion of its profit share and claims administration revenue[280](index=280&type=chunk) - The company is exposed to interest rate risk as its **$145.3 million** Term Loan due 2027 has a variable interest rate based on SOFR[281](index=281&type=chunk)[282](index=282&type=chunk) [Financial Statements and Supplementary Data](index=50&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This item refers to the consolidated financial statements and supplementary data included later in the report, starting on page F-1 - This item refers to the consolidated financial statements and supplementary data included later in the report[284](index=284&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=50&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure are reported[285](index=285&type=chunk) [Controls and Procedures](index=50&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2023, with no material changes identified during the period - Management concluded that disclosure controls and procedures were effective at a reasonable assurance level as of the end of the period[286](index=286&type=chunk) - Based on the COSO 2013 framework, management concluded that internal control over financial reporting was effective as of December 31, 2023[288](index=288&type=chunk) - No material changes in internal control over financial reporting were identified during the period[290](index=290&type=chunk) [Other Information](index=51&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the fourth quarter of 2023 - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the three months ended December 31, 2023[291](index=291&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=51&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable to the company - This disclosure item is not applicable[292](index=292&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=52&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's 2024 Proxy Statement - Information is incorporated by reference from the 2024 Proxy Statement[294](index=294&type=chunk) [Executive Compensation](index=52&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's 2024 Proxy Statement - Information is incorporated by reference from the 2024 Proxy Statement[295](index=295&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=52&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information for this item is incorporated by reference from the company's 2024 Proxy Statement - Information is incorporated by reference from the 2024 Proxy Statement[296](index=296&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=52&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's 2024 Proxy Statement - Information is incorporated by reference from the 2024 Proxy Statement[297](index=297&type=chunk) [Principal Accountant Fees and Services](index=52&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's 2024 Proxy Statement - Information is incorporated by reference from the 2024 Proxy Statement[298](index=298&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=53&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists the financial statements, schedules, and exhibits filed as part of the Annual Report on Form 10-K - This item lists the documents filed as part of the report, including financial statements, schedules, and various exhibits[300](index=300&type=chunk)[301](index=301&type=chunk) [Form 10-K Summary](index=56&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary for its Form 10-K - No Form 10-K summary is provided[303](index=303&type=chunk)

Open Lending Corporation (NASDAQ:LPRO) Q4 2023 Earnings Conference Call February 27, 2024 5:00 PM ET Company Participants Keith Jezek - CEO Chuck Jehl - CFO Conference Call Participants Peter Heckmann - D.A. Davidson David Scharf - JMP Securities Kyle Peterson - Needham & Company John Hecht - Jefferies Operator Good afternoon, and welcome to Open Lending's Fourth Quarter and Full Year 2023 Earnings Conference Call. As a reminder, today's conference call is being recorded. On the call today are Keith Jezek, ...

Financial Performance - Revenue for FY 2023 was $11746 million, compared to $179594 million in 2022[39] - Gross profit for FY 2023 was $95178 million, compared to $159626 million in 2022[39] - Net income (loss) was $(4842) million in Q4 2023 and $(4189) million in Q4 2022, while for FY 2023 it was $22070 million and $66620 million in 2022[38, 39] - Adjusted EBITDA for FY 2023 was $5017 million, compared to $105736 million in 2022[38, 45] - Adjusted EBITDA margin was (14)% in Q4 2023, 32% in Q4 2022, 43% for FY 2023 and 59% for FY 2022[38] Key Performance Indicators - Total Certs were 26263 in Q4 2023 and 34550 in Q4 2022, while for FY 2023 it was 122984 and 165211 in 2022[12, 32, 45] - Facilitated Loan Origination Volume was $764149 thousand in Q4 2023 and $1036327 thousand in Q4 2022, while for FY 2023 it was $3614303 thousand and $4758597 thousand in 2022[12] - New Vehicle Certs as a % of Total were 139% in Q4 2023 and 153% in Q4 2022, while for FY 2023 it was 134% and 103% in 2022[12] - Used Vehicle Certs as a % of Total were 861% in Q4 2023 and 847% in Q4 2022, while for FY 2023 it was 866% and 897% in 2022[12] Shares Information - Total Shares Outstanding as of February 27, 2024, were 118877 thousand[59] - Total Shares Issued were 128198 thousand[59]

[Financial Results Overview](index=1&type=section&id=Open%20Lending%20Reports%20Fourth%20Quarter%20and%20Full%20Year%202023%20Financial%20Results) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Keith Jezek highlighted exceeding Q4 guidance and outlined 2024 priorities to optimize the core business and expand into the bank segment - Exceeded the high-end of guidance for certified loans and revenues in Q4, excluding a negative change in estimate for profit share[2](index=2&type=chunk) - Priorities for 2024 include optimizing the core business and expanding into the bank segment to capture pent-up demand from an anticipated industry recovery[2](index=2&type=chunk) [Fourth Quarter 2023 Highlights](index=1&type=section&id=Three%20Months%20Ended%20December%2031%2C%202023%20Highlights) Q4 2023 saw significant declines in certified loans and total revenue to **$14.9 million**, resulting in a net loss of **$4.8 million** and negative Adjusted EBITDA of **$(2.1) million**, largely due to profit share adjustments Q4 2023 vs Q4 2022 Financial Performance | Metric | Q4 2023 | Q4 2022 | Change | | :--- | :--- | :--- | :--- | | Certified Loans | 26,263 | 34,550 | -24.0% | | Total Revenue | $14.9 million | $26.8 million | -44.3% | | Gross Profit | $9.6 million | $21.9 million | -56.1% | | Net Loss | $(4.8) million | $(4.2) million | Increased Loss | | Adjusted EBITDA | $(2.1) million | $8.5 million | Negative Swing | - Q4 2023 results were negatively impacted by a **$14.3 million** reduction in estimated future profit share revenues from historic vintages, compared to a **$12.8 million** reduction in Q4 2022[5](index=5&type=chunk) [Full Year 2023 Highlights](index=1&type=section&id=Twelve%20Months%20Ended%20December%2031%2C%202023%20Highlights) Full year 2023 results showed a decline across all key financial indicators, with total revenue at **$117.5 million** and significant reductions in net income and Adjusted EBITDA, impacted by profit share adjustments Full Year 2023 vs Full Year 2022 Financial Performance | Metric | FY 2023 | FY 2022 | Change | | :--- | :--- | :--- | :--- | | Certified Loans | 122,984 | 165,211 | -25.6% | | Total Revenue | $117.5 million | $179.6 million | -34.6% | | Gross Profit | $95.2 million | $159.6 million | -40.4% | | Net Income | $22.1 million | $66.6 million | -66.8% | | Adjusted EBITDA | $50.2 million | $105.7 million | -52.5% | - Full year 2023 results were negatively impacted by a **$22.8 million** reduction in estimated future profit share revenues from historic vintages, compared to a **$5.7 million** reduction in 2022[5](index=5&type=chunk) [First Quarter 2024 Outlook](index=2&type=section&id=First%20Quarter%202024%20Outlook) The company projects Q1 2024 total certified loans between **24,000 and 28,000**, total revenue between **$26 million and $30 million**, and Adjusted EBITDA between **$10 million and $14 million** Q1 2024 Guidance | Metric | Guidance Range | | :--- | :--- | | Total Certified Loans | 24,000 - 28,000 | | Total Revenue | $26 - $30 million | | Adjusted EBITDA | $10 - $14 million | [Consolidated Financial Statements](index=4&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=OPEN%20LENDING%20CORPORATION%20Consolidated%20Balance%20Sheets) As of December 31, 2023, total assets slightly decreased to **$374.0 million**, with cash increasing to **$240.2 million** and contract assets significantly declining, while total liabilities rose and stockholders' equity decreased Balance Sheet Summary (as of December 31, in thousands) | Account | 2023 | 2022 | | :--- | :--- | :--- | | **Total Assets** | **$374,037** | **$379,631** | | Cash and cash equivalents | $240,206 | $204,450 | | Total contract assets, net | $29,314 | $75,430 | | **Total Liabilities** | **$168,457** | **$166,807** | | Long-term debt, net | $139,357 | $143,683 | | **Total Stockholders' Equity** | **$205,580** | **$212,824** | [Consolidated Statements of Operations](index=5&type=section&id=OPEN%20LENDING%20CORPORATION%20Consolidated%20Statements%20of%20Operations) Full year 2023 total revenue decreased **34.6%** to **$117.5 million**, leading to sharp declines in operating income to **$29.1 million** and net income to **$22.1 million**, with diluted EPS falling to **$0.18** Statement of Operations Summary (Full Year Ended December 31, in thousands) | Account | 2023 | 2022 | | :--- | :--- | :--- | | Total Revenue | $117,460 | $179,594 | | Gross Profit | $95,178 | $159,626 | | Operating Income | $29,075 | $97,615 | | Net Income | $22,070 | $66,620 | | Diluted EPS | $0.18 | $0.53 | - In Q4 2023, the company reported a net loss of **$(4.8) million** compared to a net loss of **$(4.2) million** in Q4 2022. The loss was driven by a revenue decline to **$14.9 million** and an operating loss of **$(8.3) million**[18](index=18&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=OPEN%20LENDING%20CORPORATION%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased to **$82.7 million** in 2023, primarily due to lower net income, while financing activities used **$42.3 million**, largely for share repurchases, ending the year with **$246.7 million** in cash Cash Flow Summary (Full Year Ended December 31, in thousands) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $82,658 | $107,431 | | Net cash used in investing activities | $(2,178) | $(624) | | Net cash (used in) provided by financing activities | $(42,330) | $(17,797) | | **Net change in cash** | **$38,150** | **$89,010** | | **Cash at end of period** | **$246,669** | **$208,519** | - Share repurchases were a significant use of cash in financing activities, totaling **$37.3 million** in 2023, up from **$18.0 million** in 2022[20](index=20&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=2&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Financial%20Measures) [Non-GAAP Financial Measures Explanation](index=2&type=section&id=Non-GAAP%20Financial%20Measures%20Explanation) The company uses non-GAAP measures like Adjusted EBITDA to supplement GAAP results, providing investors with insights into operational performance by excluding non-cash and non-recurring items - The company uses non-GAAP financial measures internally to analyze financial results and believes they are useful for investors in evaluating ongoing operational performance[10](index=10&type=chunk)[11](index=11&type=chunk) - Adjusted EBITDA is defined as GAAP net income excluding interest expense, income taxes, depreciation and amortization, and share-based compensation expense[12](index=12&type=chunk) [Reconciliation Analysis](index=7&type=section&id=Reconciliation%20Table%20Analysis) Full year 2023 Net Income of **$22.1 million** adjusted to Adjusted EBITDA of **$50.2 million**, a significant decrease from 2022, with Adjusted EBITDA margin contracting to **43%** Reconciliation of Net Income to Adjusted EBITDA (Full Year, in thousands) | Line Item | 2023 | 2022 | | :--- | :--- | :--- | | Net income | $22,070 | $66,620 | | Total adjustments | $28,100 | $39,116 | | **Adjusted EBITDA** | **$50,170** | **$105,736** | Reconciliation of Net Income (Loss) to Adjusted EBITDA (Q4, in thousands) | Line Item | Q4 2023 | Q4 2022 | | :--- | :--- | :--- | | Net income (loss) | $(4,842) | $(4,189) | | Total adjustments | $2,702 | $12,710 | | **Adjusted EBITDA** | **$(2,140)** | **$8,521** |

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission File Number: 001-39326 OPEN LENDING CORPORATION (Exact Name of Registrant as Specified in its Charter) Delaware ...